Prices for ex-Brazil basic pig iron (BPI) have been relatively stable over the past week since, after the slight rises seen since late April, US customers have been resisting any further increases.
The only deal at a slightly higher level, for 20,000-30,000 mt, of BPI with 0.15 percent phosphorus content has been reported over the past week at $450/mt FOB, versus previous contracts at $440-445/mt FOB. But most market sources who have heard about the deal believe it is not for the US market. One trader said that it could be for Latin America. Offers for ex-Brazil BPI with 0.15 percent phosphorus content have remained at $450-460/mt FOB, translating to $480-490/mt CFR New Orleans. But market sources said that, since local prime grade scrap prices are stable for May and no improvement has been seen in the steel market while inventories are not at such bad levels, Brazilian suppliers have failed to achieve higher prices, at least for now. The reference price for ex-Brazil BPI has settled at $440-450/mt FOB today, just slightly up by $2.5/mt on average from a week ago.
Also, another deal for a relatively small tonnage of 20,000 mt of BPI with lower phosphorus content from the north of Brazil has been reported at $485/mt CFR, translating to around $455/mt FOB. This deal signals that the US market is not strong, as previously exporters of this grade were targeting $465-470/mt FOB. The latest ex-Ukraine offer to the US has been heard at $490/mt CFR, also down by $5-10/mt over the past week. As a result, the reference import pig iron price in the US, which reflects both high and low phosphorus material, has settled at $475-490/mt CFR.